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SAN FRANCISCO--(BUSINESS WIRE)--According to Charles Schwab’s SDBA
Indicators ReportTM, an industry-leading benchmark on
retirement plan participant investment activity within self-directed
brokerage accounts (SDBAs), the market correction that occurred during
the fourth quarter of 2018 weighed on participant accounts, as the
average SDBA balance fell to $246,153, a decline of 10.6 percent from 3Q
2018 and 6.3 percent year-over-year.

SDBAs are brokerage accounts within retirement plans, including 401(k)
and other types of retirement plans, which participants can use to
invest in stocks, bonds, exchange-traded funds, mutual funds and other
securities that are not part of their retirement plan's core investment
offerings.

According to the Schwab data, mutual funds continued to hold the highest
percentage of participant assets at approximately 37 percent, the same
as Q4 2017. Allocations to equities remained at 28 percent, and
exchange-traded funds (17%), cash (15%), and fixed income (3%) rounded
out participants’ portfolios. Despite the high market volatility
experienced in the fourth quarter, participants averaged just 2.2 trades
per month.

Allocation Trends

The data also reveals specific sector holdings within each investment
category:

With regard to mutual funds, large-cap funds represented approximately
28 percent of all allocations, followed by taxable bond (21%),
international (16%), hybrid (12%) and small-cap (12%) funds.

Apple (AAPL) was the top overall equity holding, representing
approximately 9 percent of the equity allocation of portfolios. Amazon
(AMZN) was the second-largest equity allocation, representing
approximately 6.5 percent of portfolios, an increase of 3 percent
since 4Q 2017. Berkshire Hathaway (BRKA) (3%), Microsoft (MSFT) (2%)
and Facebook (FB) (1.75%) rounded out the top five equity holdings.

Among exchange-traded funds, investors allocated the most dollars to
U.S. equity (48%), international equity (16%) and U.S. fixed income
(15%).

Report Highlights

Additional findings include:

On average, participants held approximately 10 positions in their SDBA.

Baby Boomers and Gen X made up approximately 41 percent of SDBA
participants each, followed by Millennials at 12 percent.

The average age of an SDBA participant was 51. Seventy-six percent of
participants were male and 24 percent were female.

About the SDBA Indicators ReportTM

The SDBA Indicators Report includes data collected from approximately
137,000 retirement plan participants who currently have balances between
$5,000 and $10 million in their Schwab
Personal Choice Retirement Account®. Data is extracted quarterly on
all accounts that are open as of quarter-end and meet the balance
criteria.

The SDBA Indicators Report tracks a wide variety of investment activity
and profile information on participants with a Schwab Personal Choice
Retirement Account (PCRA), ranging from asset allocation trends and
asset flow in various equity, exchange-traded fund and mutual fund
categories, to age trends and trading activity. The SDBA Indicators
ReportTM provides insight into PCRA users’ perceptions of the
markets and the investment decisions they make.

Data contained in this quarterly report is from the fourth quarter of
2018, and can be found at www.schwab.com/sdbaindicators,
along with prior reports.

About Charles Schwab

At Charles Schwab, we believe in the power of investing to help
individuals create a better tomorrow. We have a history of challenging
the status quo in our industry, innovating in ways that benefit
investors and the advisors and employers who serve them, and championing
our clients’ goals with passion and integrity.